Only AI and Healthcare Are Creating Jobs Right Now — PhD Economist Explains What That Means

Job growth has slowed to roughly 34,000 jobs added per month — less than a fifth of the typical expansion-era pace of about 186,000 per month. Ph.D. economist Orphe Divounguy joins talks with Greg Bishop for Everyday Economics to break down what's driving the slowdown and what to watch for this week, including FOMC meeting minutes due Wednesday. Divounguy notes business investment growth is concentrated in AI-related sectors and data center construction, with hiring outside AI, healthcare, and parts of the Pacific Northwest largely stalled. The hiring rate is at its lowest level since around 2012, and low quit rates suggest workers currently employed are reluctant to switch jobs given limited opportunities elsewhere. Retail sales are up roughly 5% year-over-year, but Divounguy attributes most of that increase to price growth rather than higher real consumer spending, with inflation currently outpacing wage growth. On housing, Divounguy expects building permits to remain at depressed levels due to elevated mortgage rates, though housing starts could tick up as builders work through previously authorized but un-started units. Read more and follow Everyday Economics at thecentersquare.com.